This question is just coming from a place of curiosity. I'm hoping someone can help me to better understand.
When writing new business (whether its auto, or home, or a personal umbrella), insurance carriers often have different "writing companies" for different types of risk, different territories, etc.
For example, a personal auto policy with Progressive may be written with "Progressive Northern Insurance Co.", and another one might be written with "Progressive Specialty Insurance Co.".
Another example: let's say one client's home doesn't have all of the necessary updates within 20 years, so they don't qualify for the "elite" tier for a specific carrier. As a result, the "writing" company of this policy is different than the writing company for clients that are in that elite tier (even though both groups are insured by the same carrier). I'm hoping I'm making sense...
Does anybody know why these carriers have multiple writing companies? Is it for compliance reasons? Is it for administrative purposes so that the carrier is able to more effectively manage their clients and the types of risks profiles?
I would love to learn about why these insurance carriers have so many different writing companies and where this practice/system originated from. Thank you in advance for your help!
When writing new business (whether its auto, or home, or a personal umbrella), insurance carriers often have different "writing companies" for different types of risk, different territories, etc.
For example, a personal auto policy with Progressive may be written with "Progressive Northern Insurance Co.", and another one might be written with "Progressive Specialty Insurance Co.".
Another example: let's say one client's home doesn't have all of the necessary updates within 20 years, so they don't qualify for the "elite" tier for a specific carrier. As a result, the "writing" company of this policy is different than the writing company for clients that are in that elite tier (even though both groups are insured by the same carrier). I'm hoping I'm making sense...
Does anybody know why these carriers have multiple writing companies? Is it for compliance reasons? Is it for administrative purposes so that the carrier is able to more effectively manage their clients and the types of risks profiles?
I would love to learn about why these insurance carriers have so many different writing companies and where this practice/system originated from. Thank you in advance for your help!